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DocuSign (DOCU) Beats Stock Market Upswing: What Investors Need to Know
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DocuSign (DOCU - Free Report) closed at $41.08 in the latest trading session, marking a +1.66% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.9%.
Shares of the provider of electronic signature technology witnessed a loss of 4.65% over the previous month, trailing the performance of the Business Services sector with its loss of 0.48% and the S&P 500's gain of 1.45%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is predicted to post an EPS of $0.61, indicating a 7.02% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $689.17 million, indicating a 6.77% growth compared to the corresponding quarter of the prior year.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $2.73 billion. These results would represent year-over-year changes of +29.06% and +8.55%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 15.41. This represents a discount compared to its industry's average Forward P/E of 23.04.
Also, we should mention that DOCU has a PEG ratio of 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 45% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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DocuSign (DOCU) Beats Stock Market Upswing: What Investors Need to Know
DocuSign (DOCU - Free Report) closed at $41.08 in the latest trading session, marking a +1.66% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.9%.
Shares of the provider of electronic signature technology witnessed a loss of 4.65% over the previous month, trailing the performance of the Business Services sector with its loss of 0.48% and the S&P 500's gain of 1.45%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is predicted to post an EPS of $0.61, indicating a 7.02% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $689.17 million, indicating a 6.77% growth compared to the corresponding quarter of the prior year.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $2.73 billion. These results would represent year-over-year changes of +29.06% and +8.55%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 15.41. This represents a discount compared to its industry's average Forward P/E of 23.04.
Also, we should mention that DOCU has a PEG ratio of 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 45% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.